BlockchainWazirX Abandons Loss Plan, Files FIR Post $230M Hack

WazirX Abandons Loss Plan, Files FIR Post $230M Hack

WazirX Responds to Cyberattack with FIR, Drops Loss Distribution Plan

The Indian-based digital asset exchange WazirX has recently come under pressure from its customers after it suffered a major hack that saw it lose more than $230 million. Regarding the event, WazirX has claimed the filing of the First Information Report (FIR), which demonstrates the company’s readiness to solve the problem and punish the offenders. The FIR has been registered under section 66(B) of the IT Act and section 153A of the BNS which proves that the investigation is not casual.

WazirX Files FIR & Scraps Loss Distribution Plan Amid Backlash

WazirX has been quick to act after the infamous hack that saw its users lose a lot of money. The exchange stated on X (formerly known as Twitter) that an FIR was filed on August 5, 2024, at the PS Special Cell in Lodhi Colony, New Delhi. This came after a previous complaint was filed right after the cyberattack with the aim of getting WazirX’s multisig wallet.

The exchange has been cooperating with the Intelligence Fusion & Strategic Operations (IFSO) department of the Delhi Police in the case. WazirX has faith in the ongoing investigation and has affirmed to its users of its commitment to recovering the stolen funds. The company has been very open with its customers in informing them of the measures being taken to improve security and avoid such incidences in the future.

In light of the hack, WazirX initially proposed a loss distribution plan to mitigate the impact on its users. WazirX has abandoned its plan to socialize losses following backlash from customers and the crypto community. Instead, the exchange is seeking a $230 million cash injection and exploring partnerships with foreign and Indian exchanges. 

The proposal to redistribute assets, which would have resulted in a 45% loss for all wallet holders, was met with strong opposition. Despite the hack, experts believe WazirX remains a valuable asset due to India’s potential as a major crypto market. Partnerships with WazirX could offer foreign exchanges a significant entry point into this growing market. The decision underscores the challenges WazirX faces in balancing customer satisfaction with effective crisis management.

Conclusion

In response to a significant hack resulting in over $230 million in losses, WazirX has taken decisive action by filing an FIR and collaborating with the Delhi Police’s IFSO unit. Despite initial plans to distribute losses among users, backlash led WazirX to seek a $230 million cash injection and explore partnerships instead. This incident highlights the challenges of crisis management and the potential of India’s crypto market.

Read Also: Toncoin Poised to Overtake Dogecoin for 8th Spot

Matthew Leising
Matthew Leisinghttps://www.newsalarms.com/
Matthew Leising is an accomplished journalist at NewsAlarms, specializing in trading across stocks, crypto, and forex markets. With a keen eye for market trends and in-depth analysis, he provides valuable insights into the world of financial trading

Latest news

Fit and Fun Fest: Your Passport to Wellness – A Community Health Fair for World Health Day

Nashville, Tennessee, 28th March 2025, ZEX PR WIRE, In celebration of World Health Day, Drug-Free Tennessee is hosting Fit...

Codego Launches CDG: New Plug-and-Play Devices for Effortless Daily Passive Income

Dubai, UAE, 26th March 2025, ZEX PR WIRE, The CDG project has officially launched, introducing an innovative solution that...

GoMining Revolutionizes Bitcoin Mining with Innovative NFT Integration

Tortola, BVI, 24th March 2025, ZEX PR WIRE, GoMining, a recognized leader in blockchain mining solutions, is revolutionizing the...

Salvatore Castagna Revolutionizes Passive Income with Customizable Cryptocurrency Devices

Milan, Italy, 24th March 2025, ZEX PR WIRE, Salvatore Castagna, a pioneer in financial and technological innovation, has developed...

MFEV Coin Now Listed on Finsai Exchange: A New Era for Modular Blockchain Innovation

The MFEV Blockchain , a pioneering initiative in the blockchain space, is thrilled to announce the official listing of...

Finsai X Launches MFEV Trading: A New Era of Seamless and Secure Crypto Trading

Finsai X, the next-generation cryptocurrency trading platform, has reached a significant milestone with the official launch of MFEV trading....

Must read

MFEV Marathon Success in Serbia: Celebrating Runners, Community, and Charity

MFEV proudly announces the successful conclusion of the MFEV...

Top Cryptos Under $1 to Buy in 2024: Invest Now!

Top Cryptocurrencies to Consider for 2024: Best Picks for...

Must-Grab Crypto Airdrops This August 2024

Get Ready for Exciting Upcoming Crypto Airdrops! Prepare yourself for...

Trending Now: The 5 Best Tap-To-Earn Games Across the Globe

Earn Crypto with These Top 5 Tap-to-Earn Telegram Games The...

Rising Bitcoin Scam in Munich: Police Warn Against Fake Paper Wallets

The Bavarian State Criminal Police Office warns against Bitcoin...

You might also like
Recommended to you